Dell Q3 earnings report shows revenue, income drop

Dell Computer Corp. released its third quarter earnings Thursday, reporting net income during the period of US$429 million, or 16 cents per share, on revenue of $7.5 billion.

Analysts polled by Boston-based First Call/Thomson Financial had estimated that Dell would report $7.27 billion in third-quarter revenue, with earnings of 15 cents per share. Last month, Dell had reaffirmed its earlier projections, which largely matched the results reported after the U.S. financial markets closed today .

Although the company pointed to solid growth in the shipment of its hardware products, revenues for the quarter ending Nov. 2 were still down 10 percent from the same period in 2000, when the company reported revenue of $8.2 billion. Operating income also dropped, from $818 million in 2000 to $544 million this year, a 34 percent decrease. Dell also said net income was off 36 percent from $674 million a year ago to $429 million this year.

Earnings were down as well, falling 36 percent from 25 cents per share last year.

Michael Dell, chairman and CEO of the company, pointed to growth in Dell's market share in several areas, highlighting a rise in the shipment of PowerEdge servers and notebook computers. He also pointed to services revenue, which totalled $716 million the quarter, up 15 percent from a year ago.

Total revenue from company services and peripheral products was $1.7 billion, up 16 percent and accounting for a record 23 percent of net sales.

"Customer preference for the value we're delivering in higher-end products and services is growing rapidly," Dell said. "In every part of the world, our highest growth rates were in enterprise products and portable computers. ... We're gaining share faster than ever in Dell's history [and] positioning ourselves exceptionally well for when the economy and spending on information technology improve."

Looking ahead, Dell indicated that the fourth quarter for the company is likely to show little growth.

Citing a combination of indicators, Dell suggested that fourth-quarter revenue would be off from the third quarter, with flat product shipments. Dell said he expects the company's own fourth-quarter volumes to rise about 5 percent sequentially, with revenue up just slightly. The company anticipates stable profit margins, with earnings for the quarter again at 16 cents per share.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ken Mingis

Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?